Intra-day KSE-100 Index advancements erased by afternoon profit-reaping activities
Here's a fresh take on the recent happenings at the Pakistan Stock Exchange (PSX):
The stock market in Pakistan showed some turbulent trading sessions last Thursday, with the KSE-100 Index seeingusefulness in both directions before eventually closing the day down by 260 points.
Initially, the KSE-100 started the day on a positive note, touching an intra-day high of 126,718.28. However, the index faced some selling pressure in the second half, which pushed it into the negative territory. At the end of the day, the benchmark index settled at 124,093.12, a loss of 259.56 points or 0.21%.
Analysts at brokerage house Topline Securities reported that the Pakistani stock market ended the session on a negative note, with a range of 2,365 points and a low of 501 points, before closing at 124,093. The decline in stocks like ENGROH, FFC, PPL, OGDC, and BAFL collectively eroded 401 points from the index, while PKGP, UBL, BAHL, LUCK, and DGKC collectively added 347 points[1].
Post-budget Conference
During a conference on Wednesday, the Finance Minister Muhammad Aurangzeb warned that additional revenue measures of up to Rs500 billion would be taken next fiscal year, if enabling amendments and legislation on enforcement weren't passed by parliament. He also mentioned that all the budget figures were locked with the International Monetary Fund (IMF)[4].
The federal budget 2025-26, with a total outlay of Rs17.573 trillion, was presented to parliament on Tuesday, targeting a GDP growth rate of 4.2% against 2.7 per cent in the outgoing year[4].
Market Trends Prior to the Volatile Session
Interestingly, the day before the volatile trading session, the PSX extended an overall rally as key indices posted strong gains. The KSE-100 had risen by 2,328 points, or 1.91%, to close at 124,352.68 points[2]. However, the previous day's optimism seemed to dwindle as investors engaged in substantial profit-taking[3].
International Market Overview
Meanwhile, global stocks and the dollar took a hit on Thursday, as investors assessed a benign US inflation report and the fragile trade truce between Washington and Beijing. The rising tensions in the Middle East and lingering tariff anxiety continued to dampen risk sentiment in the market[5].
Attention in financial markets this week has been focused on the US-China trade talks, which culminated in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students to access US universities[5].
Overall, the volatile trading session in the Pakistan Stock Exchange can be attributed to profit-taking by investors following a strong post-budget rally and cautious short-term sentiment[1]. Despite some turbulence, the market continues to show signs of recovery, with robust investor participation and improved sentiment following the positive announcements in the federal budget[6].
[1] Topline Securities (2025, June 12). Post-Market Report: KSE-100 Index closes negative due to cautious investor sentiment and profit-taking activity. Retrieved from https://topline-securities.com/repository/reports/22135_PostMarketReport-250612-PSX-KSE-100-Index-closes-negative-due-to-causitious-investor-sentiment-and-profit-taking-activity.pdf
[2] Dawn (2025, June 11). Stocks extend recovery: KSE-100 up 2,328 points. Retrieved from https://www.dawn.com/news/1711944
[3] The Express Tribune (2025, June 12). KSE-100 Index closes in the red. Retrieved from https://tribune.com.pk/story/2550779/kse-100-index-closes-in-the-red
[4] The News International (2025, June 10). Federal budget 2025-26: Revenue measures of up to Rs500 bn to be taken if enabling legislation not passed. Retrieved from https://www.thenews.com.pk/print/1112086-federal-budget-202526-revenue-measures-of-up-to-rs500bn-to-be-taken-if-enabling-legislation-not-passed
[5] Associated Press (2025, June 12). Stocks, dollar slip amid tensions and trade truce. Retrieved from https://apnews.com/article/business-stock-markets-europe-asia-pacific-financial-markets-2c588c79ce07a1a5f9e0c1c0b54ba0ee
[6] Pakistan Today (2025, June 12). Jump in volumes underline strong participation by institutional investors. Retrieved from https://www.paktoday.com.pk/jump-in-volumes-underline-strong-participation-by-institutional-investors/
- The volatile trading session on the Pakistan Stock Exchange (PSX) resulted in a decline of 260 points for the KSE-100 Index, despite an initial positive start, due to a combination of profit-taking and cautious investor sentiment.
- Analysts at Topline Securities reported that the decline in stocks like ENGRO, FFC, PPL, OGDC, and BAFL collectively eroded 401 points from the index, while on the other hand, PKGP, UBL, BAHL, LUCK, and DGKC collectively added 347 points.
- Prior to the volatile session, the PSX had extended an overall rally, with the KSE-100 posting strong gains of 2,328 points, reflecting optimism among investors.
- The turbulent trading session can be attributed to investors' profit-taking following a strong post-budget rally, as well as a delicate short-term sentiment in the market.
- The international market was affected by a benign US inflation report, the fragile trade truce between Washington and Beijing, rising tensions in the Middle East, and lingering tariff anxiety, all of which dampened risk sentiment in the market.
- Despite the volatile session, the market continues to show signs of recovery, with robust investor participation and improved sentiment following the positive announcements in the federal budget.
